Outsourced clinical trial expenditure is not eligible for weighted Research and Development deduction

Recently, the Mumbai bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Concept Pharmaceuticals Ltd. Vs. ACIT (ITA No. 1739/M/2009, 1034/M/2009) (Judgement Date: 19 November 2010, Assessment Year 2005- 06) held that outsourced clinical trial expenditure is not eligible for weighted Research and Development deduction under Section 35(2AB) of the Income-tax Act, 1961 (the Act). The Tribunal held that the expenditure on clinical trial, though the same is an integral part of scientific research, will be eligible for weighted deduction only if the expenditure is incurred on an...